Taxable income of partnership firm

Discussion in 'Tax queries' started by jamesh, Mar 3, 2014.

  1. jamesh

    jamesh Member

    I want to ask about the case - when a partnership firm is having profit of rs 75000 before providing remuneration and interest but after all allowable expenses then is tax chargeable if partners remuneration equals to book profit.Or we have to take (net profit - Int. on capital)*90% as permissible remuneration and do computation accordingly? I am of opinion that no tax will be liable but have doubts so wants to clear.Thanz in advance for helping.

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